Gm, Union Ok Tentative Accord

November 21, 1986|United Press International

DETROIT -- Tentative contract agreement was reached early today in a strike at Delco, a key supplier plant for General Motors Corp., that had forced layoffs of nearly 34,000 GM workers and threatened to close all of the automaker`s U.S. assembly plants.

``A tentative agreement between Delco Electronics Corp. and UAW Local 292 was reached early today,`` GM spokesman John Mueller said.

The strike by the 7,700 United Auto Workers at the Kokomo, Ind., plant began Monday. By today, it had forced the industry giant to shut down eight plants and chop production at two other facilities, idling 33,385 workers in eight states.

Mueller said details of the pact were withheld pending a ratification vote scheduled for Saturday in Kokomo.

Mueller said the agreement was reached around 2 a.m. EST.

The Kokomo workers struck over concern that GM intended to transfer some work to Mexico, where the labor rate is $2 an hour, compared with a wage and benefit package of about $23 an hour for UAW members at Kokomo. GM Chairman Roger Smith had warned that if the walkout continued, the company would be ``completely shut down.``

Plants shut down completely included two in Michigan and one each in Kansas, Kentucky, Missouri, Delaware, New Jersey and Indiana.